diff --git a/ci/azure/linux_script b/ci/azure/linux_script
index b740f9d698712e5849fb853dc24899f0a5bb75c2..cf46b2c22210c13949594f1c4d679cd0a8851549 100755
--- a/ci/azure/linux_script
+++ b/ci/azure/linux_script
@@ -25,10 +25,8 @@ wget -nv "https://ziglang.org/deps/$QEMUBASE.tar.xz"
 tar xf "$QEMUBASE.tar.xz"
 export PATH="$(pwd)/$QEMUBASE/bin:$PATH"
 
-# Bump to v0.23 once this issue is resolved:
-# https://github.com/ziglang/zig/issues/8742
-WASMTIME="wasmtime-v0.22.1-x86_64-linux"
-wget -nv "https://github.com/bytecodealliance/wasmtime/releases/download/v0.22.1/$WASMTIME.tar.xz"
+WASMTIME="wasmtime-v0.26.1-x86_64-linux"
+wget -nv "https://github.com/bytecodealliance/wasmtime/releases/download/v0.26.1/$WASMTIME.tar.xz"
 tar xf "$WASMTIME.tar.xz"
 export PATH="$(pwd)/$WASMTIME:$PATH"
 
diff --git a/lib/std/fs.zig b/lib/std/fs.zig
index a280f6ccaaabe0d6fe7c47c19d793f1d01f2fa77..390efec50c7289665e0b8544bb4b86aa158d098f 100644
--- a/lib/std/fs.zig
+++ b/lib/std/fs.zig
@@ -1264,11 +1264,9 @@ pub const Dir = struct {
     pub fn openDirWasi(self: Dir, sub_path: []const u8, args: OpenDirOptions) OpenError!Dir {
         const w = os.wasi;
         var base: w.rights_t = w.RIGHT_FD_FILESTAT_GET | w.RIGHT_FD_FDSTAT_SET_FLAGS | w.RIGHT_FD_FILESTAT_SET_TIMES;
-        if (args.iterate) {
-            base |= w.RIGHT_FD_READDIR;
-        }
         if (args.access_sub_paths) {
-            base |= w.RIGHT_PATH_CREATE_DIRECTORY |
+            base |= w.RIGHT_FD_READDIR |
+                w.RIGHT_PATH_CREATE_DIRECTORY |
                 w.RIGHT_PATH_CREATE_FILE |
                 w.RIGHT_PATH_LINK_SOURCE |
                 w.RIGHT_PATH_LINK_TARGET |
diff --git a/test/stage2/wasm.zig b/test/stage2/wasm.zig
index 828292d2a459be4443e417af96c5d900758a5093..947f90ff0f26f1839ebaa73c637a28492137492b 100644
--- a/test/stage2/wasm.zig
+++ b/test/stage2/wasm.zig
@@ -56,13 +56,7 @@ pub fn addCases(ctx: *TestContext) !void {
             \\}
             \\fn bar() void {}
         ,
-        // This is what you get when you take the bits of the IEE-754
-        // representation of 42.0 and reinterpret them as an unsigned
-        // integer.
-        // Bug is fixed in wasmtime v0.26 but updating to v0.26 is blocked
-        // on this issue:
-        // https://github.com/ziglang/zig/issues/8742
-            "1109917696\n",
+            "42\n",
         );
 
         case.addCompareOutput(